The BBA's figures were supported by ones from the Building Societies Association which showed total lending by its members during November rose to #2.43 billion from #2.31 billion the previous month.

Once redemptions and repayments were taken into account lending was up #693 million - more than double July's figure.

Loan approvals were also stronger, rising to #2.53 billion from #2.28 billion the previous month.

Adrian Coles, director-general of the Building Societies Association, put the increase down to its members increasing their share of the mortgage market.

Lending to industry recovered during November from its low level the previous month, with borrowing by real estate companies up #624 million, and lending to hotels and restaurants also increasing.

However these rises were partly off-set by repayments from retailers, which the BBA said probably reflected strong sales in the run up to Christmas.

Lending to financial firms also fell significantly, dropping by #3.23 billion, as groups replaced sterling borrowing with other currencies to take advantage of low interest rates in Europe and the US.

Overall total lending to the private sector, including lending to individuals, rose by #4.82 billion to #790.48 billion, slightly up on Octoberundefineds figure but well down on the trend level of #8.30 billion.

During November the BBA said private sector deposits soared by #6.41 billion, and money paid into savings accounts by individuals rose at its highest rate yet, increasing by #3.26 billion.

The Building Societies Association reported a #861 million rise in deposits, down from #1.08 billion in October.

The Council of Mortgage Lenders, which was also due to report lending figures today, said its data had been delayed due to a computer problem.